Foreign Private Buying of U.S. Securities Surges in August
|The Treasury International Capital (TIC) report showed a net inflow of $125.0 billion in August, driven entirely by private buyers. Net long-term purchases of U.S. securities were the strongest since May.
Foreign Private Demand Very Strong in August
- The total net TIC inflow was $125.0 billion in August on the heels of $7.3 billion inflow in July.
- Foreign private demand drove the capital inflow surge, contributing $131.5 billion, more than offsetting the $6.5 billion outflow from official demand. Although still negative on a 12-month moving sum basis, the trend of net foreign official selling has reversed in recent months.
Long-Term Securities Also See Strong Inflows
- Net long-term TIC flows climbed in line with the total, rising $67.2 billion in August. Among the major asset classes, U.S. corporates saw the largest net purchases in the month. Equities saw a modest sell-off.
- China was a large net buyer of U.S. Treasuries, increasing its holdings by $34.5 billion in August. Japanese holdings declined a more modest $11.4 billion.
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